Assume that a Models and More store bought and sold a line

Price: $2.99


E6-21 Comparing amounts for ending inventory—perpetual inventory—FIFO
and LIFO [5–10 min]

Assume that a Models and More store bought and sold a line of dolls during
December as follows:

Beginning inventory . . . . . . 13  units @ $ 11 units
Sale . . . . . . . . . . . . . . . . . . 9
Purchase . . . . . . . . . . . . . . . 17 units @ $ 13 units
Sale . . . . . . . . . . . . . . . . . . 13

Models and More uses the perpetual inventory system.

Requirements

1. Compute the cost of ending inventory using FIFO.

2. Compute the cost of ending inventory using LIFO.

3. Which method results in a higher cost of ending inventory?